Germany increases tax income forecast significantly over next five years

Germany will receive higher tax income than previously expected over the next five years, thanks to the robust economy and healthy employment, said a panel of tax experts on Wednesday.

Germany's federal, state and regional governments are likely to receive 691.2 billion euros (795 billion U.S. dollars) in 2016, around 5 billion euros more than the level estimated in November last year, said the panel of experts commissioned by German Federal Finance Ministry.

By 2020, Germany's total tax revenue will be 42.4 billion euros higher than initially estimated, according to the latest forecast.

Experts said the upward revision was due to favorable economic performance and healthy labor market in Germany as they benefit businesses and households by raising profits and wage income.

Germany sticks to its target of budget balance despite roaring costs for accommodating and integrating millions of refugees from war-torn areas in the Middle East.

"The tax estimate confirms our belief that we can overcome the current major challenges without new debt," German Finance Minister Wolfgang Schaeuble said on Wednesday.(1 euro = 1.15 U.S.dollars)